Oil drops as U.S. election uncertainty dominates markets | Reuters
Oil prices fell on Thursday as Democrat Joe Biden edged closer to the White House in a nail-biting U.S. presidential election, though doubts remain over further huge stimulus to bolster the ecomony in the face of the coronavirus crisis.
Brent crude LCOc1 fell 33 cents, or 0.8%, to $40.90 a barrel by 0927 GMT and U.S. West Texas Intermediate (WTI) crude CLc1 was down 39 cents, or 1%, at $38.76. Both contracts had jumped around 4% on Wednesday.
Biden predicted victory over President Donald Trump after winning two critical U.S. states while the Republican incumbent alleged fraud, filed lawsuits and demanded recounts in a bitter contest that has yet to be decided.
A drawn-out court battle over the results could cause additional uncertainty in the market, spawning further sell-offs within risky asset classes, including oil futures, said Bjornar Tonhaugen, Rystad Energy’s head of oil markets.
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